Child healthcare turning expensive? See how family floater health plan can help you out

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Published: November 15, 2019 6:04:45 PM

If one of the family members gets sick and needs to be hospitalized, the total sum insured of the policy can be utilized by the family member for his/her treatment.

family floater policy, family policy, insurance, health insurance, healthcare costs, hospital bills, family floater vs individual health insurance, fixed sum insured, floating sum insured, health insurance premium, discount on health insurance premiumHere are some pros and cons of a family floater plan:

Unless you are sitting lavishly on a lot of money, paying for extensive medical treatment will surely burn a hole in your pocket. Health care costs are up and rising. Not only limited to medical treatment for the elderly or the senior citizen, but it is also expensive across all age groups. Even for newborns, most couples see a sudden rise in their expenses. Parents are also suggested by Hospitals and doctors to go for annual health care check-ups, not only for the child but for the whole family and most offer packages for the same.

Not only after the child is born that the medical cost rises, but the health care expenses also increase even before the child is born. For instance, other than the usual check-ups of the mother, normal delivery at a top hospital can cost anywhere between Rs 60,000 to Rs 1.5 lakh in a metro. Health insurance policies generally, do not extend their cover for this cost, but very few policies include this expense in their cover but only after a waiting period, which ranges from 2-4 years.

Maternity expenses are also covered by employee health covers, but the amount ranges between Rs 25,000 to Rs 50,000, which most likely will be insufficient. Hence, experts suggest buying a health insurance policy that includes maternity cover, can help out recently married couples.

Hospitalization of the child for infections and injuries can result in a bill of Rs 1.5 to Rs 3 lakh, or even higher. Hence, industry experts suggest the child should be added to the family health floater cover once the child is 90 days old. However, find out with your insurance provider, when can you do that as some insurers allow this only at the time of renewal of the policy, whereas some allow this at all times of the year.

Note that with the inclusion of a child, the sum insured should also be increased and because of this, the premium of the policy will also rise. The sum insured amount with the inclusion of the child should go up by 30 to 50 per cent at the least. Experts suggest a family with a family floater should have a sum insured of Rs 10 lakh or a minimum of Rs 5 lakh at least, given the rise of medical costs.

Here are some pros and cons of a family floater plan:

Pros

  • Under one insurance policy, the policyholder gets to take care of the entire family, which is easier to manage than managing separate policies.
  • When it comes to getting your parents insured, family floater stands out as a much cheaper option than getting a senior citizen’s health plan.
  • It is easy to add the policyholders, immediate family members, be it a spouse or a new-born.
  • Also, if one of the family members gets sick and needs to be hospitalized, the total sum insured of the policy can be utilized by the family member for his/her treatment.
  • Family floater plans enjoy income tax benefits under section 80D, of the Income Tax Act.

Cons

  • In case of more than one claim within a year, the family member taking the second claim gets a thinned out cover. That is the left out the amount from the first claim, goes out to the second claimant.
  • Most family floater policies provide insurance cover only for the policyholder, the spouse, and their children. It generally excludes the policyholder’s parents and siblings.
  • One of the major drawbacks, especially if senior citizen parents are also included in a family floater plan, is the renewability of the policy. The policy can only be renewed till the oldest member included in the cover reaches the maximum renewability age. However, with IRDAI’s intervention of IRDA, insurers have started offering lifelong renewability.

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